Application
This unit describes the skills and knowledge required to determine the key financial requirements for establishing and maintaining a successful small or micro business.
It applies to individuals engaged in a small business occupation, such as trade-based operators, seeking to enhance their financial literacy.
No licensing, legislative or certification requirements apply to this unit at the time of publication.
Elements and Performance Criteria
ELEMENT | PERFORMANCE CRITERIA |
Elements describe the essential outcomes. | Performance criteria describe the performance needed to demonstrate achievement of the element. |
1. Demonstrate knowledge of costs and benefits of small and micro business | 1.1 Determine business objectives and opportunities 1.2 Identify benefits and disadvantages of operating a small or micro business 1.3 Identify start-up and ongoing costs associated with running a small or micro business |
2. Analyse obligations and risks of operating a small or micro business | 2.1 Determine legal and regulatory requirements affecting operations of the business 2.2 Investigate financial decisions relevant to different business models 2.3 Identify insurance requirements and related mitigation strategies 2.4 Analyse taxation and record-keeping obligations |
3. Identify mechanisms for supporting business success | 3.1 Research licensing, legal and regulatory responsibilities required to ensure compliance of the business 3.2 Investigate business processes required to maintain appropriate records 3.3 Identify long-term career goals and/or continuing education to support business objectives |
4. Examine opportunities for business learning, mentoring and advice | 4.1 Identify key components of a business plan and skills and knowledge required to develop and monitor the business 4.2 Evaluate personal attributes required to operate a small or micro business 4.3 Identify potential mentors, advisers, networks and sources of assistance for the business and how they may be engaged |
Evidence of Performance
Evidence of the ability to:
analyse financial information impacting on small and micro business
make sound financial decisions in the small and micro business context
examine mechanisms and opportunities to support business development and success.
Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.
Evidence of Knowledge
To complete the unit requirements safely and effectively, the individual must:
list business registration and licensing requirements including:
ASIC Connect business names and registration
registration for Australian business number (ABN), tax file number (TFN) and goods and services tax (GST)
trade and occupational licensing
describe key requirements of Commonwealth, state and territory, and local government legislation and licensing relating to business operations, including:
Work Health and Safety Act
Environmental Protection Act
equal employment opportunity and anti-discrimination
Fair Work Act
Competition and Consumer Act
Income Tax Assessment Act
Taxation Administration Regulations
insolvency
ASIC Act
Privacy Act
Occupational Licensing National Law Act
identify costs associated with running a business:
labour hire
employee entitlements
compliance with occupational licensing and other legislation as required
cash flow management
explain planning processes:
key components of a business plan
risks to be included in a business plan
benefits of business planning
summarise sources of assistance for micro and small business operators:
accountant
bookkeeper
industry associations
Business Enterprise Centres
Australian Taxation Office (ATO)
Australian Securities and Investments Commission (ASIC)
National Occupational Licensing Authority (NOLA)
relevant state industry bodies
explain taxation responsibilities for small and micro business, including:
record keeping, invoicing and GST
preparing the return, lodgement and payment of a business activity statement (BAS)
employee and contractor payroll, and pay as you go (PAYG) taxation.
Assessment Conditions
Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the financial literacy field and include access to current information about personal financial matters.
Assessors must satisfy NVR/AQTF assessor requirements.
Foundation Skills
This section describes language, literacy, numeracy and employment skills incorporated in the performance criteria that are required for competent performance.
Skill | Performance Criteria | Description |
Reading | 1.2, 1.3, 2.1-2.4, 3.1-3.3, 4.1-4.3 | Researches and interprets written information from a range of sources to identify relevant aspects for the required task |
Numeracy | 1.3, 2.2, 3.2, 4.1 | Performs a range of mathematical calculations to interpret financial information and to develop and manage business plans and budgets |
Navigate the world of work | 1.1-1.3, 2.1-2.4, 3.1-3.3, 4.1, 4.2 | Identifies, confirms and understands licensing, legal and regulatory requirements Maintains up-to-date knowledge of small business financial management and applies this to own situation |
Interact with others | 4.3 | Actively sources mentors and advisors to access their perspectives and experiences |
Get the work done | 1.1-1.3, 2.1-2.4, 3.1-3.3, 4.1-4.3 | Uses digital systems and tools to complete tasks, and to access and manage finance related information Plans routine tasks and organises work according to defined requirements Uses systematic, analytical processes in routine and non-routine situations, gathering and interpreting information, informing decision making and identifying and evaluating potential strategies |
Sectors
Financial literacy